Jim Cramer on Cerence: "I Think the Current Version Has Got More Upside"

Cerence Inc. (NASDAQ:CRNC) is one of the stocks on Jim Cramer’s radar. Cramer mentioned the stock during the episode and had some positive things to say about the company’s CEO, Brian Krzanich. He stated:

“When research director, Ben Stoto, and I played around with the company’s website, wow, Cerence could respond, interact, and unlike Alexa, handle interruptions with a plum… Now here’s what really matters: Cerence is just a $472 million company… Brian’s a big-time CEO at a small-time company. He ran Intel, and then after that, ran CDK Global. He then sold CDK to Brookfield, a private equity firm, for 30% premium versus where the stock was trading before they made the bid.

I know Brian’s cleaning up Cerence AI like he cleaned up CDK. He has no desire to sell. He wants to build, and I think he will because his voice technology’s superior to anything I’ve seen. To me, this is the kind of situation where you could win either way. The market’s red hot. You don’t want to buy something that’s already had a great deal of a run, but at one point, Cerence, the stock, traded at more than 10 times what it sells for right now. And while it had much better profitability back then, I think the current version has got more upside.”

Cerence Inc. (NASDAQ:CRNC) develops AI-powered virtual assistant solutions for the transportation industry. The company also provides edge and cloud-based software, integration, and professional services.

While we acknowledge the potential of CRNC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.